Anyone can block the signal given how weak it is, and there are news reports of people doing so (and being charged for it). You can supposedly buy jammers online for not a lot of money.
> ... (I think it was done on the Gulf War) or disable the unencrypted GPS signal (only the US military can decode them).
What you are probably referring to is "Selective Availability" and is the purposeful degrading of the signal to make it less accuracy. The DoD said it will not do so, and has given assurances to the FAA (because planes are now highly dependent on it). The newest GPS III satellites no longer have the S/A hardware:
* https://en.wikipedia.org/wiki/Error_analysis_for_the_Global_...
By 2000 people had figured out to get quite accurate results even with the S/A enabled, so the whole thing not as useful:
* https://www.aviationtoday.com/2000/07/01/the-real-reason-sel...
If there's a war on it's probably cheaper to just jam in the area of operations.
The GPS system does not have any area denial capability. If the US wants to block it in a certain area they have to deploy terrestrial jammers just like anyone else.
Allies get decryption keys for the military high-accuracy signal.